Houston area multiplex opportunity

2 Replies

Hello,

I found this multiplex on the HAR and wanted to see if anyone would be willing to partner on this deal? I like this area in Houston and I think it will never struggle to keep people living there. The property has been on the market for sometime and we can probably get it for a cheaper than asking. I don't have the rent #'s on it but if there is enough serious interest in this property I can take the lead on it and ask my realtor to get the numbers for us.

http://www.har.com/1710-indiana-st/sale_14128930

Thank you

Updated over 3 years ago

*** Edit. I lived in the area for 8 years and have a good feel for rentals there. I would estimate rent would be between 16-17K/month if fully occupied.

Khaled, I appreciate your enthusiasm and really dont want to rain on your parade but:

a)   How can you possibly come up with a valuation without rental info, much less the operating expenses?

b) Based on how hot the Houston multifamily market has been and how many MF investors are hunting for deals in Houston, my guess is this is likely way overpriced!  Otherwise it would have been snatched up quickly.

The broker is a good friend of mine.  I know the full history of that property.  Who owned it several owners ago and what a few people between then and now paid.

It'll cash flow but it'll be a 6-7 CAP. You're over $100k/door on older class C stock -- which will never be a strong cash flow story.


I own hundreds of units in this Montrose submarket and haven't bought any in the last few years since when i was buying them I was paying ~$50k/door and the rents were 80-90% of what they are now. So in the last few years asset prices have doubled, while rents have only gone up a bit (so basically CAP/returns have fallen off a cliff since everyone wants to own in Montrose)

Better bet would be to go a few miles east.  Pay $40k/door and get 75% the rents.  higher return, more upside.

But if you really want this one, PM me and I'll see what I can share on pricing data.